St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-09-03
1T is A SENSATION.
How the News Struck the People
of Baltimore.
Special to the Globe.

Special to the Globe
BALTIMORE, Sept. 2.-The announce
ment from New York this evening to
the effect that the Baltimore road has
been practically mortgaged to the extent
of $40, 100000, and that the management
of the road would pass over to Drexel,
Morgan & Co., has created considerable
excitement in this city, and was the
chief topic of conversation on the street
tonight. The sale of the Baltimore &
Ohio Express still occupied the public
mind when this second surprise came
like thunderbOlt. A few minutes
after the receipt of the dispatch
from New York, reporter has
tened to the residence of William
+. Burns, chairman of the finance
committee, and president pro TEN. of
the Baltimore q Ohio, with copy of it.
After reading it carefully Mr.. Burns
said: 'AnYthing that DreXel, Morgan d
Co. say about the matter, you may rest
assured is true. | can add nothing to
the statement as given in this dispatch.
From what | know, however, | think
there is some trifiing discrepancy in the
way the negotiation of the loans is re-
ported" What the discrepancy is, he
did not care to state, but repeated, with
emphasis, that DreXel. Morgan d Co.'s
statements could be relied upon. John
K. Cowen, general counsel for the Bal
timore d Ohio, and James Carrycoale,
both confirmed the statement as con-
tanned in the dispatch, but would say
nothing further about the matter. Maj.
Hodges was also called upon. The an
nOuncement was
A COMPLETE SURPRISE
to him, and he could scarcely believe
~
would take such a step without consult
ing the city, which owns $4,000 shares
of stock, upon the matter. He could
not believe that the Baltimore & Ohio
had such an immense floating debt as to
require loan Of S10,000,G00 to pay it off.
He thinks the stability of the company,
when brought into purely railroad
business, IS unimpaired. There is re-
port current tonight, which emanated
from semi-official source, that prior to
his departure for Europe Robert Garrett
gave to John W. Mackay an option to
purchase the Baltimore IL Ohio tele-
graph, said option to expire Sept. 10,
inst.
PHILADELPHIA COMMENT.
Special to the Globe.
PHILADELPHIA, Sept. 2.-In its fnan-
cial article referring to the contract en-
tered into between the Baltimore q Ohio
railroad and syndicate of bankers, the
Ledger tomorrow will say:
The policy of the syndicate as regards the
telegraph express and sleeping-car interests
of the Baltimore d Ohio will be that the
company shall be managed Oh the same basis
as other trunk lines, and thus remove the an
tagonism that has arisen from the policy
heretofore pursued. The express contract
has already been disposed of, and while
there is no necessity, SO far as the debt of the
company is concerned, for disposing Of the
others, they may or may not be sold, as shall
be hereafter determined.
j. Pierrepont Morgan, who effected
the settlement of the West Shore rail-
road difficulty with the New York Cen
trail railroad, and several other similar
important troubles between the trunk
lines, and who was principal negoti-
ator in the contract, said to-day:
1t is scarcely possible to over-estimate the
importance of these negotiations, partic-
ularly as regards the trunk lines. The syndi-
cate is composed of the houses mentioned
and they are each and all of them interested
in the trunk lines through the various nego-
tiations which they from time to time have
made. They are now united to protect these
interests as far as their influence and power
lies